F&O data showed that on the call side, the highest OI was observed at 17,700, followed by 17,800 strike prices, while on the put side, the highest OI was at 17,500 strike price.
The daily momentum indicator made a positive crossover. Chart readers said today’s fall might appear aggravated on account of weekly expiry. Overall, the range of consolidation is likely to be 17500 – 17925 from a short-term perspective.
What should traders do? Here’s what analysts said:
Rahul Ghose, Founder & CEO, Hedged
Traders are going into next week’s expiry with short call positions of 17700, which has also the highest OI for next week’s expiry. Nifty is still in a broadly sideways range, with 17,250 being the bottom end of the range and the 18,040 level being the upper end of the range. Until these levels get taken out, we expect to see up-and-down moves in this 800-point range.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
For bulls, 17650 would act as an immediate resistance zone. Below the same, the index could slip till 17500-17450. On the flip side, above 17650, a minor intraday pullback rally could be seen till 17700-17750.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty seems to have formed a new lower top at the important resistance of 17800 levels (opening downside gap of 22nd Feb and weekly 10 and 20 period EMA), and one may expect further weakness down to 17400 levels in the short term. Any upside bounce from here could encounter resistance around 17680-17700 levels.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the daily charts, we can observe that the 40-day moving average (17,764) acted as a stiff resistance, and Nifty is facing selling pressure from the 17,760 – 17,800 zones. The fall in the hourly charts suggests that it is corrective. Hence, this fall is unlikely to result in a trend reversal. In terms of price pattern, the Nifty might be in the process of forming a Bullish flag pattern.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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